Jim, an Accountant, Is Asked to Prepare a Statement by Clark

question 89

Multiple Choice

Jim, an accountant, is asked to prepare a statement by Clark. This statement provides details about property owned by Clark. Jim is aware that Clark intends to use this statement to obtain a loan from a bank. Which of the following statements is true of this scenario?

• A) In the states that follow the Ultramares Doctrine, the bank cannot sue Jim for malpractice.
• B) The bank can sue Jim for malpractice in all the states in the United States.
• C) The Ultramares Doctrine allows the bank to sue Jim for malpractice.
• D) The bank cannot sue Clark because a contractual relationship exists between Jim and the bank.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments such that supply equals demand, and no economic profits are earned.

Increased Demand

A situation where the desire or need for a product or service grows, often leading to higher sales or consumption.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and easy entry and exit from the market.

Long Run

A period in which all factors of production and costs are variable, enabling full adjustment to change.